China, Vietnam, EU: The Shoe Wars

The European Union decided Feb. 4 to extend tariffs on shoe imports from China and Vietnam for another 15 months. In the context of the difficult economic recession, the move makes sense considering that the troubled Mediterranean economies of Spain, Portugal and Italy stand to gain the most from a continuation of tariffs. But the EU's decision also was sparked by disagreements between Europe and China over intellectual property rights and China's eventual need to shift away from low-cost production, where countries like Vietnam are slowly overtaking its advantage.